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TMI Blog2024 (6) TMI 758X X X X Extracts X X X X X X X X Extracts X X X X ..... cts, the appellant had received various inputs and input services which are used in or in relation to manufacture and sale of such final products. The appellant have received various input services such as renting of property, commission agent, banking, security, courier, transportation, repairing/servicing, labour charges for job work, insurance, professional fees, clearing and forwarding, chartered engineer, inspection/testing services etc., and in respect of service tax paid on such services, the appellant have taken credit of service tax paid on the said input services on the strength of invoices received by the appellant. The Department had interpreted that the aforesaid services are not used in or in relation to the manufacture of final products and thus did not qualify as 'input service' within the meaning of Rule 2 (l) of Cenvat Credit Rules, 2004 (CCR). Accordingly show cause proceedings were initiated for recovery of Cenvat credit wrongly utilized by the appellant in terms of Section 11A(1)(a) of the Central Excise Act, 1944 read with Rule 14 of Cenvat Credit Rules, 2004. The show cause notice dated 21.03.2018 proposed for recovery of Cenvat credit of service tax amountin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d disposed of these input services in the following manner, for rejecting these as eligible input credit by upholding the order of original authority; in few cases, where the input services were demonstrated to have been used having direct nexus with the manufacturing facility, he had also allowed the input credit in favour of the appellants. The gist of the details of these input services have been captured in the following table: Sl. No. Nature of input service Amount of input credit in Rs. Decision taken by Commissioner (Appeals) 1 Renting of property services 732326 Upheld as ineligible input credit and Cenvat denied 2 Security services 184466 Upheldas ineligible input credit and Cenvat denied 3 Telephone services 6832 Held as eligible input credit and Cenvat credit allowed 4 Inspection/Testing services 25087 Held as eligible input credit and Cenvat credit allowed 5 Courier services 15549 Upheldas ineligible input credit and Cenvat denied 6 Repair and Maintenance services 24743 Upheldas ineligible input credit and Cenvat denied 7 Transport services/charges 100592 Upheldas ineligible input credit and Cenvat denied 8 Banki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efinition of the input services under scrutiny now' is not a restrictive definition and that the word "such as' used at the end of the category, 'activities relating to business, expands its scope and so, not only those services given as example but other services of activities of business are also covered by the definition. It is also contended that by use of words, 'directly or indirectly and in or in relation to' the/manufacture of the final products the scope is further widened. All the contentions of the assesee are emphasizing this basic argument The case laws cited by the assesee in this regard are also related to the same issue that the words "such as", expand the scope of definition, and not restrict it. The dictionary meanings of the: word given by them also highlight the same. On examining this contention against the allegation in the notice and analysis of the definition done above, it is seen that the notice does not delve on the restrictive meaning of the term such as, as mis-conceived by the assessee, and does not allege that only the services as actually mentioned in the definition are covered, but, the notice alleges that only those services which a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d aim of controlling the cascading effect does not serve the purpose. Similarly even if the services are essential and- important for the smooth running or the functioning of the business, or even if they cater to the welfare of the employees, indirectly promoting the business, or even if the expense1 on that account forms part of the cost of the product, if the service does not fall in the ambit of the definition for qualification, the credit can not be allowed. On the same lines, even if the Income Tax Act treats the expenses towards these services as expenditure for the purpose of income tax calculations, they can not automatically qualify as input service without answering to the definition given under the Cenvat Credit Rules. 26. A few case laws have been cited by the assesee in support of their case which hold that particular services such as Telephone and mobile phone, courier services, repairs / maintenance, labour etc. are input services. However, the case laws are subjective and naturally cover particular circumstances of the appellants of those cases, and can not be said to have, hard and fast universal applicability without regard to the individual circumstances. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsideration of the factual submissions made by the appellant and the relevance of judicial determination on each of the input service, I find that the issues covered in the present case are being same except for different period in the subsequent year, I am of the considered view that the ends of justice would be met, if the present appeal is also allowed to be decided by the original adjudicating authority, for a decision afresh in de nova proceedings. As either of the sides have not brought before me that the decision in de novo proceedings have already been taken, it would be expedient that this appeal is also remanded back to the original adjudicating authority to enable him decide these issues alongwith other SCNs already remanded. 6. In view of the foregoing discussions, I do not find any substance in the impugned order dated 16.01.2019, in denying the Cenvat credit on input services without proper examination in the context of various decisions passed by the Hon'ble High Court of Bombay and Hon'ble Supreme Court. Therefore, the impugned order is set aside and the matter is remanded back to the original adjudicating authority for consideration of the various subm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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